The Minister of Infrastructure, Tarcísio de Freitas, said today (28) that the overcoming of bottlenecks involving workers' rights, obtained with the labor reform, has already been noticed by foreign investors and, with the portfolio of attractive assets in the country; the trajectory of fiscal recovery; and the fall in the basic interest rate (Selic), represents a set of factors that place Brazil in the target of investments.

Freitas said that this situation will allow, by the end of the year, more than 100 asset auctions to be implemented by the portfolio and highlighted the concession projects for the BR-116/101 highways (Nova Dutra, between Rio de Janeiro and São Paulo ) and BR-163, in Pará, and the West-East Integration Railway, in addition to the sixth concession round of 22 airports.

"If we chart countries of continental size, above 5 million square kilometers, with a gigantic population, above 200 million inhabitants, therefore, with a large consumer market, and GDP [Gross Domestic Product] above US $ 1 trillion, we will see that, at the intersection of this diagram, we will have only three countries: Brazil, China and the United States ", said Freitas, when participating in the Invest Brasil Infraestructure 2020 webinar, promoted by Apex-Brasil. "This, in itself, already attracts the attention of foreign investors."

"And there is even more: the trajectory we are on, having gone through a severe crisis; and, from there, the structural change where the main risks perceived by investors were attacked, such as the labor issue", added the minister, reiterating that, with the reform, the country was able to overcome the bottlenecks involving labor rights. "There was an extraordinary decrease in labor claims after the reform."

Also according to the minister, the scenario became more attractive with the approval of the spending ceiling, which started a trajectory of fiscal recovery, and with the pension reform. In addition, the fall in interest rates continued, with the Selic rate at 2.25%, which is "extraordinary" for investments in infrastructure. "We have the largest concession program in the world, which will bring an avalanche of private money to our economy, transforming our infrastructure in the coming years", highlighted Freitas, recalling that Brazil also has "a history of respect for contracts", which is well seen by investors.

According to Freitas, the country has learned to structure its concessions and, therefore, it probably has "the most sophisticated structure in the world today, with regard to risk sharing". As an example, he cited exchange rate risk, a subject that, despite appearing to be of concern to investors, has always been "thrown under the carpet".

To overcome this problem, the minister said that the strategy adopted was the so-called "variable grant", a measure that, according to him, dampens exchange variations in situations where the investor has to take money abroad. "We are going to deduct, from the value of the variable grant, the loss with an eventual devaluation of the exchange rate, or add the gain with any appreciation. We will work with debits and credits in a graphic account until the end of the financing period, leaving a period of liquidity for the settlement of accounts ", explained the minister.